Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. MTR CORPORATION LIMITED 香港鐵路有限公司 (the “Company”) (Incorporated in Hong Kong with limited liability) (Stock code: 66) ANNOUNCEMENT OF AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020 RESULTS Year ended 31 December in HK$ million 2020 2019 Change Revenue from recurrent businesses 42,541 54,504 -21.9% (Loss) / profit from recurrent businesses^ (1,126) 4,980 n/m Profit from property development 5,507 5,580 -1.3% Investment property revaluation (loss) / gain (9,190) 1,372 n/m Net (loss) / profit attributable to shareholders of the Company (4,809) 11,932 n/m ^ : including share of results of associates and joint venture n/m : not meaningful - Final ordinary dividend of HK$0.98 per share recommended. Total ordinary dividend for the year of HK$1.23 per share, same as that of 2019 HIGHLIGHTS Hong Kong Businesses - On-going COVID-19 pandemic impacted significantly our financial performance in 2020. Patronage suffered a drop of 31.5% and shopping malls, duty free shops, station kiosks and advertising businesses were all adversely affected. Amid these challenges, fare rebates offered to passengers and rental concessions to tenants underscoring our support to communities in difficult times - In spite of the pandemic, train service delivery and passenger journeys on-time in our heavy rail remained at 99.9% world-class level - Tuen Ma Line Phase 1 opened in February 2020 and full line opening expected to be in the third quarter of 2021 - The East Rail Line new signalling system and new 9-car trains commissioned on 6 February 2021 - The funding for the Shatin to Central Link (“SCL”) project approved by Legislative Council (without the additional project management cost of HK$1,371 million). The Company will comply with its project management obligations and meet the costs, on an interim and without prejudice basis, to allow the SCL project to progress and a provision for such project management cost was made - Invitation received from Government to proceed with (i) detailed planning and design of Tung Chung Line Extension, Tuen Mun South Extension, Kwu Tung Station and Northern Link, and (ii) technical studies on the development of Siu Ho Wan Depot site Page 1 HIGHLIGHTS (continued) Hong Kong Businesses (continued) - Remaining interest of Telford Plaza II and PopCorn 2 acquired in March 2020 and The LOHAS opened in August 2020 - Hong Kong property development profit was HK$5.4 billion with two new property packages awarded in 2020 and one more in 2021 Mainland of China & International Businesses - Four new projects commenced operations: two in Hangzhou, one in each of Shenzhen and Beijing - Two new concessions won: Shenzhen Metro Line 13 Public Private Partnership project in Mainland, and Mälartåg Train Service Operations and Maintenance concession in Sweden Corporate Strategy and Outlook - Our new Corporate Strategy “Transforming the Future” will support our sustainable growth and deliver shareholder and stakeholder value by emphasizing innovation and environmental, social and governance principles - The development of COVID-19 still remains uncertain and its adverse impact on our recurrent businesses may continue well into 2021 - Profit booking from MONTARA, SEA TO SKY and MARINI of LOHAS Park is dependent on construction progress. Subject to market conditions and necessary Government’s approval, we aim to tender out four property development packages in the next 12 months or so The Directors of the Company announce the audited results of the Company and its subsidiaries (the “Group”) for the year ended 31 December 2020 as follows: CONSOLIDATED PROFIT AND LOSS ACCOUNT Year ended 31 December in HK$ million 2020 2019 Revenue from Hong Kong transport operations 11,896 19,938 Revenue from Hong Kong station commercial businesses 3,269 6,799 Revenue from Hong Kong property rental and management businesses 5,054 5,137 Revenue from Mainland of China and international railway, property rental and management subsidiaries 21,428 21,085 Revenue from other businesses 894 1,545 42,541 54,504 Revenue from Mainland of China property development - - Total revenue 42,541 54,504 Expenses relating to Hong Kong transport operations - Staff costs and related expenses (6,317) (6,489) - Maintenance and related works (2,085) (2,662) - Energy and utilities (1,671) (1,841) - General and administration expenses (888) (1,209) - Railway support services (295) (630) - Stores and spares consumed (572) (613) - Government rent and rates (284) (256) - Other expenses (206) (329) (12,318) (14,029) Page 2 Year ended 31 December in HK$ million 2020 2019 Expenses relating to Hong Kong station commercial businesses (509) (680) Expenses relating to Hong Kong property rental and management businesses (850) (851) Expenses relating to Mainland of China and international railway, property rental and management subsidiaries (20,895) (19,760) Expenses relating to other businesses (2,496) (3,557) Project study and business development expenses (279) (276) (37,347) (39,153) Expenses relating to Mainland of China property development (13) (25) Operating expenses before depreciation, amortisation and variable annual payment (37,360) (39,178) Operating profit before Hong Kong property development, depreciation, amortisation and variable annual payment - Arising from recurrent businesses 5,194 15,351 - Arising from Mainland of China property development (13) (25) 5,181 15,326 Profit on Hong Kong property development 6,491 5,707 Operating profit before depreciation, amortisation and variable annual payment 11,672 21,033 Depreciation and amortisation (5,365) (5,237) Variable annual payment (238) (2,583) Share of profit of associates and joint venture 605 288 Profit before interest, finance charges and taxation 6,674 13,501 Interest and finance charges (1,004) (859) Investment property revaluation (loss) / gain (9,190) 1,372 (Loss) / profit before taxation (3,520) 14,014 Income tax (1,301) (1,922) (Loss) / profit for the year (4,821) 12,092 Attributable to: - Shareholders of the Company (4,809) 11,932 - Non-controlling interests (12) 160 (Loss) / profit for the year (4,821) 12,092 (Loss) / profit for the year attributable to shareholders of the Company: - Arising from recurrent businesses (1,126) 4,980 - Arising from property development 5,507 5,580 - Arising from underlying businesses 4,381 10,560 - Arising from investment property revaluation (9,190) 1,372 (4,809) 11,932 (Loss) / earnings per share: - Basic (HK$0.78) HK$1.94 - Diluted (HK$0.78) HK$1.94 Page 3 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year ended 31 December in HK$ million 2020 2019 (Loss) / profit for the year (4,821) 12,092 Other comprehensive income for the year (after taxation and reclassification adjustments): Items that will not be reclassified to profit or loss: - (Loss) / surplus on revaluation of self-occupied land and buildings (274) 121 - Remeasurement of net asset/liability of defined benefit schemes 752 730 478 851 Items that may be reclassified subsequently to profit or loss: - Exchange differences on translation of: • financial statements of subsidiaries, associates and joint venture outside Hong Kong 1,282 (344) • non-controlling interests 13 (15) - Cash flow hedges: net movement in hedging reserve (73) 244 1,222 (115) 1,700 736 Total comprehensive (loss) / income for the year (3,121) 12,828 Attributable to: - Shareholders of the Company (3,122) 12,683 - Non-controlling interests 1 145 Total comprehensive (loss) / income for the year (3,121) 12,828 Page 4 CONSOLIDATED STATEMENT OF FINANCIAL POSITION At At 31 December 31 December in HK$ million 2020 2019 Assets Fixed assets - Investment properties 86,058 91,712 - Other property, plant and equipment 101,999 102,632 - Service concession assets 32,875 31,261 220,932 225,605 Goodwill and property management rights 79 77 Property development in progress 11,942 12,022 Deferred expenditure 1,116 1,948 Interests in associates and joint venture 11,592 10,359 Deferred tax assets 470 134 Investments in securities 468 386 Properties held for sale 1,800 1,245 Derivative financial assets 480 198 Stores and spares 2,014 1,844 Debtors and other receivables 13,313 11,169 Amounts due from related parties 5,462 3,041 Cash, bank balances and deposits 20,906 21,186 290,574 289,214 Liabilities Short-term loans 3,357 3,371 Creditors, other payables and provisions 36,837 33,315 Current taxation 1,004 2,024 Amounts due to related parties 453 2,990 Loans and other obligations 46,983 36,085 Obligations under service concession 10,295 10,350 Derivative financial liabilities 381 408 Loans from holders of non-controlling interests 158 144 Deferred tax liabilities 14,125 13,729 113,593 102,416 Net assets 176,981 186,798 Capital and reserves Share capital 59,666 58,804 Shares held for Executive Share Incentive Scheme (262) (263) Other reserves 117,384 128,065 Total equity attributable to shareholders of the Company 176,788 186,606 Non-controlling interests 193 192 Total equity 176,981 186,798 Page 5 Notes: - 1. AUDITOR’S REPORT The results for the year ended 31 December 2020 have been audited in accordance with Hong Kong Standards on Auditing, issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”), by the Group’s auditor, KPMG. Unmodified auditor’s report of KPMG is included in the annual report to be sent to shareholders. The results have also been reviewed by the Group’s Audit Committee. The financial figures in respect of the Group’s consolidated profit and loss account, consolidated statement of comprehensive income, consolidated statement of financial position and the related notes thereto for the year ended 31 December 2020, as set out in the preliminary announcement, have been compared by KPMG to the amounts set out in the Group’s audited consolidated accounts for the year and the amounts were found to be in agreement.